Chapter 9 Practice Quiz: I can see the northern light

Create an illustration of a classroom setting with students engaged in a payroll training session, focusing on computers and ledgers, featuring charts, and graphs related to payroll deductions and remittances.

Chapter 9 Payroll Practice Quiz

Test your knowledge and understanding of payroll processes with this comprehensive quiz focused on Chapter 9: I Can See the Northern Light. This quiz consists of 37 questions that cover essential topics related to payroll deductions, employee entitlements, and remittances.

Key Features:

Multiple choice questions
Practice your skills and knowledge
Ideal for students and professionals in accounting

37 Questions9 MinutesCreated by CalculatingClerk97

If an employee has regular payroll deductions for a charitable donation contribution, but wants to stop making these contributions, you should –

Remember to change the amount in the payroll journal when you prepare a pay cheque

Ask the employee to reconsider because the contributions help you reach a goal for total donations

Change the amount in the remittances screen

Make the change in the ledger record for the employee

The sales by salesperson report –

Can be viewed by selecting from the Reports – Payroll menu

Can be viewed from the sales invoice

Shows only sales of inventory items

Can be helpful in calculating sales commissions

The salesperson for a sale is entered in –

The payroll journal in the invoice field

The sales journal in the employee field

The sales journal in the salesperson field

The sales journal in the job category field

Which of the following are not defined in the payroll ledger settings screens –

Payroll tax deduction settings

Payroll liability and expense linked accounts

Income and deduction names

Employee information and historical deductions

When finishing the history for the payroll ledger –

The employee history cannot be changed

The employee personal information cannot be corrected

The employee default deduction amounts cannot be corrected

The employee income and taxes cannot be corrected

What steps are involved in setting up the payroll ledger –

Enter the payroll names and settings defaults

Enter the linked payroll accounts for liabilities and expenses

Enter the employee information and historical deductions

All of the above

At any time you may change all but one of the following payroll ledger information –

The employee personal information

The employer’s income tax tables

The employee income and taxes

The employee default deductions

If historical payroll deduction data is not entered you will –

Allow tracking of year-to-date income

Not be able to track year-to-date deductions

Affect the current earnings and deductions

Allow proper T4 statement information

Which of the following choices include payroll linked accounts –

Assets – supplies, insurance

Liabilities – advances payable

Liabilities – CPP, EI, EHT

Revenue, purchases, discounts

Creating the employees’ records for payroll ledgers requires –

Input of personal and income and tax information

Input of historical income and deduction information

Input of default deduction information

All of the above

The employee default deductions –

Are the same for all employees

Are entered into the employee ledger records

Cannot be changed once you finish entering the history

Are defined by the Canada Revenue Agency tax laws

You must enter historical payroll income information for employees in the –

Historical income tab screen

Payroll ledger screen

Year-to-date income tab screen

None of the above

Corrections may be made to any payroll ledger personal information field by –

Double clicking the error to select it and typing the correct details

Entering a reminder Memo and typing the correct details

Selecting the proper default and typing the correct details

You cannot make changes to these fields

The default deduction rate for WCB (WSIB) deductions is entered in –

The deductions tab screen in the employee ledger record

The payroll ledger income settings screen

The payroll ledger taxes screen

The taxes tab screen in the employee ledger record

How are the linked accounts for CPP different from the linked accounts for income tax –

CPP has a linked liability account only; income tax has an expense account only

CPP has a linked expense account only; income tax has a liability account only

CPP has both linked liability and expense accounts; income tax has a liability account only

None of the above

Which one of the following statements about payroll linked accounts is correct –

Each employee has a unique linked wage expense account

Each employee must be linked to the same wage expense account

Each type of income must be linked to a unique expense account

None of the above

Which one of the following statements about payroll linked accounts is incorrect –

The default linked wage expense account is entered in the payroll linked accounts screen

The wage expense for all employees must be linked to the same wage expense accounts

You can enter a unique linked wage expense account for each employee

In the employee ledger record you can select the default linked wage expense account

Which of the following is not involved in setting up employee entitlements –

Naming the entitlements

Entering linked accounts for the entitlements

Entering the number of hours usually worked in a day

Entering the number of days of entitlement accrued for the employee

User-defined payroll expenses –

Are the same as other employer payroll expenses such as contributions to Employment Insurance (EI)

Are linked to liability and expense accounts

Are entered in the employee ledger deductions tab screen

Are the same amount for all employees

To create an employee benefit you would –

Choose allow benefits on the payroll settings screen

Choose the taxable benefit option on the taxes tab screen in the employee ledger

Enter the benefit amount on the taxes tab screen in the employee ledger

None of the above

To set up an employee for direct payroll deposit you must do all but one of the following –

Enter the percentage of the pay that is to be deposited to each bank account

Enter the bank, transit and account numbers as the bank account details

Enter the total payroll amount that is deposited

Choose the option direct deposit paycheque for this employee

Which of the following is true of income types –

Income types are defined on the payroll settings screen

Repayment and salary are income types you can select

Regular and overtime pay are defined as different income types

The income type for benefits and advance can be changed

Settings for deductions and income are defined on –

The payroll deductions settings screen

Payroll names setting screen

The taxes settings screen

None of the above

Payroll benefits are –

Payments made to employees for expenses like tuition and medical insurance

Donations made to other organizations on behalf of an employee

Usually taxable income

Non-taxable income

Paid sick leave or paid vacation time are –

Defined for individual employees on the benefits tab screen in the payroll ledger

Defined for all employees on a payroll settings screen

Modified in the payroll ledger records for individual employees

B and c above are correct

Which of the following statements is true about job categories –

By default, all employee names appear as in this job category when you create a new category

To define or name job categories, choose job categories from the setup menu – settings screen, payroll list

All employee names can be selected on sales invoices in the salesperson field

To assign employees to job categories, choose employee categories from the setup menu – settings screen, payroll list

Setting up for payroll remittances includes –

Marking Remittance suppliers in Payroll setup

Entering the amount to be submitted to each payroll authority

Entering the historical amount paid to each payroll authority

Choose exempt from taxes for the supplier/payroll authority

Setting up for payroll remittances does not include –

Linking each deduction to a supplier/payroll authority

Entering an opening balance for each supplier/payroll authority

Identifying suppliers as payroll authorities in the supplier ledger records

All of the above are steps in setting up payroll remittances

Setting up payroll entitlements includes –

Adding a user-defined expense for each entitlement

Adding linked liability and expense accounts for the entitlement

Adding linked liability accounts for the entitlement

None of the above

If a CPP amount is missing from a payroll journal entry, it is most likely that –

No linked account is entered for CPP Payable

The employee’s date of birth was entered incorrectly

CPP is not required in the province of employment

All of the above are possible explanations for the missing amount

When EI amounts are missing from a payroll journal entry in a February paycheque, you should check –

Whether or not you entered the historical amount correctly

Whether or not the employee’s date of birth is correct

Whether or not the linked accounts are correct

A and c are correct

When CPP amounts are missing from payroll journal entries only in the December paycheques, it may be because –

You entered the historical amount incorrectly

The employee’s date of birth is incorrect

The employee has already paid the maximum amount for the year

All of the above

When you create a new job category –

All employees are assigned to the new category initially

No employees are assigned to new category initially

All employees in this category are not salespersons initially

You cannot assign an employee from another category to the new category at the same time

When you set up payroll remittances, the Balance Forward amounts –

Are the same as the opening trial balance liability amounts for that date

Are the same as the opening trial balance expense amounts for that date

The balance forward date must be the same as the fiscal start date

Both a and c above are correct

Which of the following statements is true about linked accounts for the Payroll module –

The Vacation Payable linked account is not required when all employees are salaried

The Payroll linked bank account is not required when all employees have their pay cheques deposited directly to their bank accounts

None of the linked accounts for Payroll are essential linked accounts that are required to finish the history

The Advances Receivable linked account is an essential account (required to finish the history)

The following Payroll linked accounts are essential accounts that are required to finish the history –

The linked Vacation Payable account

The linked Advances Receivable account

The linked Payroll bank account

Both a & b are correct

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Chapter 9 Practice Quiz: I can see the northern light

Chapter 9 Payroll Practice Quiz

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